First dedicated private credit LTAF receives FCA authorisation

The first long-term asset fund with a dedicated private debt strategy received authorisation from the Financial Conduct Authority in June 2024, marking the launch of a new private credit-focused LTAF structure.

According to Dechert, twelve long-term asset funds, including sub-funds, have been authorised by the Financial Conduct Authority since March 2023, indicating a growing pipeline of vehicles using the regime.

Dechert noted that long-term asset fund redemption terms require dealing no more frequently than monthly and a minimum notice period of 90 days, aligning liquidity with the underlying private credit assets in the new structure.